28 Jun WHY TO CONSIDER AN OWNER’S TITLE INSURANCE POLICY
WHY TO CONSIDER AN OWNER’S TITLE INSURANCE POLICY
When you buy a home, the lender requires that you have mortgage title insurance which protects them against losses resulting from unknown defects in the title of your property which existed before closing. These unknown defects include outstanding liens, encumbrances, mistakes and errors of previous recording, etc. This insurance covers the costs associated with correcting those issues and providing you with “clear title.” An owner’s title insurance policy protects your interest in the home (your down payment), and while this is optional insurance it is a one-time payment; and if an issue comes up after closing, both your interest and the lender is covered with mortgage insurance and an owner title policy. This is worth serious consideration, since the cost of legal services can be substantially more.